LAB University of Applied Sciences is working with LUT University and other partners to build a bioeconomy ecosystem in South Karelia (Regional Council of South Karelia 2024). This is the largest project in LAB’s history, with goals extending into the 2030s (LAB 2025a).
LAB Biofine is a bioeconomy competence cluster that supports the growth of bioindustry companies and the commercialization of new innovations. The aim is to create knowledge-based jobs in the region and strengthen the role of LAB and LUT in the field of research, education, and services nationally and internationally (LAB 2025b).
Link to a video presentation of LAB Biofine
Where did it all begin?
South Karelia has been the center of the forest industry throughout Finland’s independence. Globally significant players such as UPM, Stora Enso, and Metsä Group continue to operate in the region, which has also contributed to the emergence of expert and technology companies related to the industry. However, in the future, there will be a need for more new bioeconomy businesses that are growth and internationally oriented (Regional Council of South Karelia 2018).
In the fall of 2018, I worked at Business Mill’s business services on the Skinnarila campus and met Mikko Ruuska, then CEO of Fiber-X Oy. His views on the growth potential of the bioeconomy in South Karelia left a strong impression on me. Ruuska played a key role when Nordic Bioproducts Group Oy (NBG) decided to locate its factory in Lappeenranta. This marked the beginning of new bioeconomy production activities.
At the end of 2022, NBG CEO Olli Kähkönen and Mikko Ruuska presented the city of Lappeenranta with concrete actions for building a bioeconomy competence cluster. At the same time, an opportunity arose to apply for EU JTF funding, which enabled up to 70 percent investment support.
In spring 2023, research groups from LUT’s Department of Separation Science and LAB’s Faculty of Technology also joined the project. At the end of the year, it was confirmed that a large-scale fermentation plant would also be built in Lappeenranta under the leadership of Symbio Powerlabs Oy and Alejandro Antalich. The center of expertise began to take shape.
LAB takes the lead
In November 2023, the city of Lappeenranta proposed that LAB take the lead in the project. I was commissioned by Vice Precident for RDI Minna Suutari and Director of the Faculty of Technology Kirsi Taivalantti to investigate the conditions under which LAB could take over the project. It was clear that, in addition to LAB’s experts, LUT’s expertise in separation technology was a key part of the project, as they have decades of strong and internationally recognized expertise in the field.
In December 2023, we had a constructive discussion with Satu Sikanen, Regional Mayor of South Karelia at the Regional Council of South Karelia, and Tuomo Sallinen, Deputy Mayor of the City of Lappeenranta. Both expressed their strong support for the project at this stage and have also worked concretely to promote it.
Spring 2024 was a period of intensive project preparation. We prepared four interlinked projects, with Annakaisa Elo and Markku Mäki-Hokkonen from LAB and Katja Lahikainen from LUT. LAB was responsible for developing and building the ecosystem itself, internationalization, and investment in the pilot plant, while LUT’s project was research-based. The projects were submitted to the funder for consideration in early May, and LAB launched the project at its own risk in June 2024. The final funding decision was made in October (LAB 2024).
In addition, we received funding from the Ministry of Education and Culture’s investment program for green solvent extraction process equipment. The positive decision arrived in January 2025.
Looking ahead to 2030
The project consists of three development projects and two investment projects, with a total value of approximately €4.8 million, including self-financing. This gives us a strong foundation, but it is not enough – we are continuing to seek additional funding. Investments for future needs are on the drawing board, but first we need to get the first phase up and running and the center of expertise growing (Business South Karelia 2025).
Will I sleep well at night?
As project director, I am responsible for a large project, but I sleep peacefully at night. We have a committed and skilled team that receives continuous support from LAB and LUT experts as well as national and international partners.
Author
Mikko Ojapelto works as the Project Director of LAB Biofine at the Faculty of Technology at LAB University of Applied Sciences.
References
Business South Karelia. 2025. A forerunner in the bioeconomy. Cited 21 Oct 2025. Available at https://businesssouthkarelia.fi/en/themes/bioeconomy
LAB University of Applied Sciences. 2024. Lappeenrantaan syntyvä biomateriaalien osaamiskeskus tähtää alan johtavaksi toimijaksi Euroopassa. News 8 Oct 2024. Cited 21 Oct 2025. Available at https://lab.fi/fi/uutiset/lappeenrantaan-syntyva-biomateriaalien-osaamiskeskus-tahtaa-alan-johtavaksi-toimijaksi
LAB University of Applied Sciences. 2025a. LAB Biofine. Cited 21 Oct 2025. Available at https://biofine.fi
LAB University of Applied Sciences. 2025b. Bioeconomy innovations can replace non-renewable raw materials – LAB Biofine aims to make South Karelia a hub for bioeconomy. Story 30 May 2025. Cited 21 Oct 2025. Available at https://lab.fi/en/story/bioeconomy-innovations-can-replace-non-renewable-raw-materials-lab-biofine-aims-make-south
Regional Council of South Karelia. 2018. Biotalous Etelä-Karjalan vahvuutena. Press release 4 Dec 2018. Cited 21 Oct 2025. Available at https://liitto.ekarjala.fi/biotalous-etela-karjalan-vahvuutena/
Regional Council of South Karelia. 2024. Lappeenrantaan syntyvä biomateriaalien osaamiskeskus tähtää alan johtavaksi toimijaksi Euroopassa. Press release 8 Oct 2024. Cited 21 Oct 2025. Available at https://www.epressi.com/tiedotteet/kotimaa/lappeenrantaan-syntyva-biomateriaalien-osaamiskeskus-tahtaa-alan-johtavaksi-toimijaksi-euroopassa.html
Links
Link 1. LAB Biofine. 2025. LAB Biofine – Join us in shaping the future of bioeconomy. YouTube video. Cited 21 Oct 2025. Available at https://youtu.be/gUX-e52B4-w
